8 Dec 2014
EUR/JPY falls after Nowotny hints at sovereign QE
FXStreet (Mumbai) - The single currency declined against the Japanese Yen after the European Central Bank (ECB) said the bank is actively considering government bonds for QE.
The EUR/JPY traded 0.36% lower at 148.71 at the time of writing, compared to the previous session’s close of 149.51 levels. The single currency fell into losses after the ECB policy maker Nowotny raised hopes of a sovereign QE in the Eurozone by stating that the bank is “specifically’ thinking about the government bonds for QE. He also warned about the high possibility of weak inflation in Q1 2015, while mentioning the negative impact of the German economic slowdown.
However, the policy maker also stated a very low probability of the negative benchmark rate, which may cap losses in the single currency. Meanwhile, the Yen has also gained against the US dollar after the official data in Japan showed a sharp slowdown in the Japanese growth rate in Q3 2014.
EUR/JPY Technical Levels
The pair has an immediate support located at 148.45, under which losses could be extended to 148.27 (5-DMA). Meanwhile, resistance is seen at 148.975 and 149.80 levels.
The EUR/JPY traded 0.36% lower at 148.71 at the time of writing, compared to the previous session’s close of 149.51 levels. The single currency fell into losses after the ECB policy maker Nowotny raised hopes of a sovereign QE in the Eurozone by stating that the bank is “specifically’ thinking about the government bonds for QE. He also warned about the high possibility of weak inflation in Q1 2015, while mentioning the negative impact of the German economic slowdown.
However, the policy maker also stated a very low probability of the negative benchmark rate, which may cap losses in the single currency. Meanwhile, the Yen has also gained against the US dollar after the official data in Japan showed a sharp slowdown in the Japanese growth rate in Q3 2014.
EUR/JPY Technical Levels
The pair has an immediate support located at 148.45, under which losses could be extended to 148.27 (5-DMA). Meanwhile, resistance is seen at 148.975 and 149.80 levels.